With the hefty down I'd aim for a lower I/O rate of 5-6%..Conventional terms would be in the high 8%'s.

And the more motivated the seller is, the more willing the seller will negotiate terms and price. 

Depending on your priorities, short list the towns fit into these above segments and then look for properties in these towns.

I'm not too clear on whether I should set up a holding company, (Delaware, Wyoming, etc). 

It would fix your cash flow problem, but that comes with the furnishing expenses and a little more work than long term rent. 

Usually, mid-term leases are a reasonable option for people in this profession but there are so many other professions/needs that most people probably don't target that worker specifically.  

Honesty and transparency is simply a profitable, long term strategy to build sustainable source of income and not end up with huge fines or, worst of all, in jail. 

This is for a long term hold for at least the next 10 years.

They also changed their terms prior to closing.

I do flips to multi-unit holds - picking up a nice creative finance deal in Wasilla shortly that I'll STR and a multi-unit in Chugiak.